Correlation Between Dupont De and Golden Sun
Can any of the company-specific risk be diversified away by investing in both Dupont De and Golden Sun at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Dupont De and Golden Sun into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dupont De Nemours and Golden Sun Education, you can compare the effects of market volatilities on Dupont De and Golden Sun and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Dupont De with a short position of Golden Sun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dupont De and Golden Sun.
Diversification Opportunities for Dupont De and Golden Sun
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Dupont and Golden is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours and Golden Sun Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Sun Education and Dupont De is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Dupont De Nemours are associated (or correlated) with Golden Sun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golden Sun Education has no effect on the direction of Dupont De i.e., Dupont De and Golden Sun go up and down completely randomly.
Pair Corralation between Dupont De and Golden Sun
Allowing for the 90-day total investment horizon Dupont De Nemours is expected to generate 0.21 times more return on investment than Golden Sun. However, Dupont De Nemours is 4.69 times less risky than Golden Sun. It trades about 0.03 of its potential returns per unit of risk. Golden Sun Education is currently generating about -0.04 per unit of risk. If you would invest 8,327 in Dupont De Nemours on August 31, 2024 and sell it today you would earn a total of 63.00 from holding Dupont De Nemours or generate 0.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dupont De Nemours vs. Golden Sun Education
Performance |
| Timeline |
| Dupont De Nemours |
| Golden Sun Education |
Dupont De and Golden Sun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dupont De and Golden Sun
The main advantage of trading using opposite Dupont De and Golden Sun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dupont De position performs unexpectedly, Golden Sun can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Golden Sun will offset losses from the drop in Golden Sun's long position.| Dupont De vs. Eastman Chemical | Dupont De vs. Linde plc Ordinary | Dupont De vs. Ecolab Inc | Dupont De vs. Sherwin Williams Co |
| Golden Sun vs. Wah Fu Education | Golden Sun vs. QuantaSing Group Limited | Golden Sun vs. Genius Group | Golden Sun vs. China Liberal Education |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Transaction History module to view history of all your transactions and understand their impact on performance.
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